“Full-Service” Brokers Lack Customer Service

With portfolio performance across the board plummeting, one of the few differentiating points for brokerage houses is customer service. One would assume that the higher the fee, the better the customer service. However, a recent Consumer Reports survey indicated just the opposite, with discount brokers significantly outperforming “full-service” brokerage houses.

Ratings were assigned based on the following categories: Account Service, Website, Phone Service, and Personal Service.

Topping the list of brokerage houses was USAA with a score of 92 out of 100. Vanguard finished second followed by Edward Jones, Schwab and Scottrade. Banc of America, Morgan Stanley, Smith Barney, Wachovia, Ameriprise and Merrill Lynch all scored in the mid to low 70s with only average ratings across the board.

The complete list of rankings is below.

Tags: Broker Rankings, Consumer Report, Discount Borker, Full-Service Broker